Dogecoin [Doge] to Break Below Key Level?

Dogecoin has recently broken below a key support level at $0.0022. Price had managed to hold at this level on numerous occasions in past trading activity. This was a key level in both June and August of this year.

Price has now broken below this level and has also dropped below the $0.002 point. The $0.002 point likely holds mostly psychological significance to traders. Each time price dropped below $0.002 over the past few days; traders have brought price action back up despite bearish conditions in many other cryptocurrencies.

Price currently trades around $0.00205 and seems likely to break below $0.002. The momentum is bearish, and the conditions across the rest of the market are also extremely bearish. The RSI has been decreasing showing strong seller momentum. The MACD has started to flatten out with the recent support levels coming in to play.

Dogecoin Daily Chart – Source: TradingView.com

In terms of the overall market, performances have been extremely bearish. The overall cryptocurrency market cap has decreased from around $211 Billion two weeks ago to around $122 Billion today, an over 40% decrease. These bearish conditions increase the likelihood that we will see Doge drop below $0.002 again and sharply decline. If this takes place, $0.002 will likely turn from a point of strong support for Dogecoin to a point of robust resistance.

Overall Cryptocurrency Market Cap

Key Takeaways:

Doge has broken below support at $0.0022 and may be setting up to drop below the key $0.002 point.

Momentum is strongly on the side of the sellers with the RSI continuing to decrease. Market conditions are also extremely bearish with an over 40% reduction in market cap over the past two weeks.

If Doge drops sharply below $0.002, it may turn from a point of strong support to robust resistance.